Q2 2026 Shelly Group AD Earnings Call Transcript
Key Points
- Revenue grew 26% year-on-year to EUR68.3 million, with EBIT up 46% to EUR17.7 million and an improved EBIT margin of 26%.
- Cash position strengthened significantly to EUR32 million, a 72% year-on-year improvement, with operating cash flow tripling to EUR22.3 million.
- Installer network expanded rapidly, with over 1,900 new installers onboarded in Q2 alone, bringing the total to 8,600, a 237% increase year-on-year.
- New product launches, including smart circuit breakers and flood sensors, are seeing strong demand, with circuit breaker production fully booked for the year.
- AI integration in R&D has accelerated development, with 70% of code now AI-generated, leading to 50% faster product development and improved efficiency.
- Signed a new pan-European distribution contract with ALSO, covering all European countries, and onboarded a specialized DIY distributor for the DACH region.
- US market expansion is progressing well, with a new distributor contract signed and first orders expected in Q4, positioning for accelerated growth in 2027.
- Administrative costs increased 52% year-on-year due to international expansion, which is expected to remain elevated for a few more quarters.
- The camera launch was postponed due to chip shortages and price increases, with the product only now entering mass production, delaying potential revenue.
- Supply chain remains under pressure from component shortages and rising material costs, with risks of potential disruptions in H2.
- The transition to indirect Amazon sales has reduced control over pricing, though the company is working to manage this through third-party sellers.
- Revenue is heavily weighted towards Q4, with Black Friday and Christmas business critical, creating concentration risk and potential volatility.
- The company faces challenges in balancing revenue growth with tighter credit control, which could impact future sales growth.
- New distribution partnerships may cause friction in existing channels, with potential short-term negative impacts as the company navigates the transition.
Welcome, ladies and gentlemen, to the earnings call of Shelly Group SE regarding the H1 figures of 2026. I would like to welcome the company's CEO, Wolfgang Kirsch; CEO, Dimitar Dimitrov; and CFO, Iliyana Krushkova, who will guide you through the presentation in a moment, followed by a Q&A session via audio line and chat.
And with that, I hand over to you, Mr. Kirsch.
Yes. Thank you very much, and good morning, everyone. Today, we are here in Sofia, Iliyana and myself. Dimitar is traveling abroad, and that's why he's joining separately. But we are all three together with a bit more place as we had the last time. So I'll start with the typical chart, and I want to add something here to the normal start that we are a smart home company and building automation company because last meetings showed that we are more understood as a building management company, especially with the new products that we are launching, that we already launched and the software solutions that we added.
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